Section 33.104 - Entrance Fee Escrow Account Requirements(a) Sections 33.401(b) - (e) and 33.402(a) of this title apply to continuing care in residence.(b) Entrance fees must be held in escrow as set forth in Health and Safety Code § 246.071. An escrow agent cannot release, and the provider cannot request or accept, entrance fee funds from the escrow agent without department approval. A provider must file CCRC Form 14a (FIN607) to request release of entrance fee escrow funds for identified residents. An escrow agent must file a CCRC Form 9 (FIN392) when a provider requests the agent release entrance fee escrow account funds.(c) To obtain department approval:(1) a provider must verify in Form 14a (FIN607) that: (A) the identified residents are receiving continuing care in residence;(B) the requested amount complies with amortization schedules contained in the continuing care in residence contracts; and(C) the provider's assets exceed the actuarial present value of the expected costs of performing all remaining obligations to all residents under continuing care contracts; and(2) the provider must disclose its operating ratio and current ratio. A provider is not eligible for a release of continuing care in residence entrance fee escrow funds if the provider's:(A) operating ratio is greater than 100 percent, unless there is a cash flow analysis acceptable to the department; or(B) current ratio is no greater than 150 percent.(d) The department will issue a determination on the request for release of continuing care in residence entrance fee escrow funds to both the provider and escrow agent.28 Tex. Admin. Code § 33.104
Adopted by Texas Register, Volume 44, Number 15, April 12, 2019, TexReg 1871, eff. 4/17/2019